Bum rate is the speed at which a startup business
consumes money. My rate would be $ 50,000 a month when my new media company started. So, I began looking around for individuals who would be my first
investors. “Angel money” it was called. But when I reviewed my list of
acquaintances to find those who might be able to help, I found the number got
small.
With no
other choices, I began meeting with the venture-capital companies. But I was
warned they took a huge share of your company for the money they put in. And if
you struggled, they could drop you cold.
As I was
searching for “angel money”, I started to build a team who trusted me even
though I didn't have money for paychecks yet.
Bill Becker
was an expert in computer programming and image processing at a very famous
Media Lab at M. I.T. With his arrival, my company suddenly had a major
technology “guy” in-house.
Katherine
Henderson, a filmmaker and a former real-estate dealer, joined us as our
director of market research. Steve White came on as operating officer. He had
worked for the developer of a home-finance software, Quicken. We grabbed him.
We had some
really good people, but we still didn't have enough money. One night, my
neighbor, Louise Johnson, came for a visit. She and I were only nodding
acquaintances, but her boys and ours were constant companions. She ran a very
good business at the time.
Louise was
brilliant and missed nothing. She had been watching my progress closely. She
knew I was dying for money and I had prospects but could offer no guarantees of
success.
She told me
that her attorney had talked to mine and the terms had been agreed upon. She
handed me an envelope. Inside was a check for $ 500,000.
I almost
fell down. I heard her voice as if from heaven.
“I have
confidence in your plan,” she said. “You' 11 do well. You're going to work hard
for it, but it' s satisfying when you build your own company.”
Who would
have thought I'd find an angel so close to home? There were no words sufficient
for the moment. We just said good night. She left and I just stood there,
completely humbled and completely committed.
1.For
a newly-established business, bum rate refers to___________.
A. the salary it pays to its staff
B. the interest it pays to the bank
C. the way in which it raises capital
D. the speed at which it spends money
2.By
"Angel money", the author refers to__________.
A. the money borrowed from banks
B. the money spent to promote sales
C. the money raised from close friends
D. the money needed to start a business
3.To
get help from a venture-capital company, you may have to__________.
A. put up with unfair terms B. change
your business line
C. enlarge your business scope
D. let them operate your business
4.The
author easily built a team for his company because__________.
A. they were underpaid at their previous jobs
B. they were turned down by other companies
C. they were confident of the author and his business
D. they were satisfied with the salaries in his
company
5.Louise
decided to lend money to the author because__________.
A. she wanted to join his company
B. she knew he would build a team
C. she knew his plan would succeed
D. she wanted to help promote his sales
